Whitlock v. Seaboard National Bank

A stockbroker, holding marginal collateral, may pledge the same up to the amount of the indebtedness owing him as an incident to his right of assignment; his pledgee, for value, takes unassailable title even beyond that amount if the transfer of the certificate to him by the original owner appears to be absolute, and the broker is guilty of conversion if he cannot return the stock originally pledged or similar certificates, upon payment by the original debtor of the amount owing on his stock transactions. Douglas v. Carpenter, 17 App. Div. 330; Lawrence v. Maxwell, 53 N. Y. 19; Smith v.…